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THQ defaulted on loan

Everyone's known for some time that THQ has been in trouble. Well, they're in discussions with their lender (Wells Fargo) to try to work something out. They've use at least 43.75 million dollars of their 50 million dollar credit line to cause this default to occur. They also have 100 million in outstanding corporate bonds. So their total debt is nearly 150 million. On top of that, they pushed back all three games that are coming out soon (Company of Heroes 2, South Park The Stick of Truth, and Metro Last Light) which will further hurt their ability to generate cash for the next few months. They had better have a spectacular holiday season this year. If things don't go just right, the banks might end up forgiving the debt in order to essentially take ownership of the company (debt to equity conversion) or they could force them into bankruptcy.

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